Legal Representation
It is with great pleasure that we welcome a guest blogger to True Real Estate. Lauren Kohl is partner of Sarasota-based Gibson, Kohl, Wolff & Hric, P.L. and is one of the many exceptional professionals True Real Estate is proud to work with. Lauren works with clients on a regular basis to close short sales and REOs, and knows better than anyone the possible legal pitfalls and challenges. Just as we know how important it is for you to have buyer representation on your Sarasota real estate purchase, it is critically important that you are also legally represented. Thanks, Lauren.
“I think that everyone is aware that when a buyer purchases a bank owned property they have the option to either pay for title insurance and select their own attorney to conduct the closing, or allow the seller to pay for the title insurance and have the seller’s title company conduct the closing.
Naturally, everyone is interested in saving money so many buyers choose to allow the seller’s attorney to close. Today I learned from a client that I represented on an REO purchase (but did not conduct the closing and issue the title insurance) that his insurance agent has still not received the check to pay for the homeowner’s insurance that was collected by the closing agent. The closing was two weeks ago and he is at risk of being uninsured.
I strongly suggest that Realtors encourage buyers of REO properties to opt to pay for title insurance for the below reasons, all which have actually happened to clients of mine:
Buyer charged excessive closing fee even though seller paying for title insurance.
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- Deed from closing not recorded 60 days after the closing (and buyer planned to re-sell!).
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- Mortgage liens not satisfied at closing.
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- Incorrect pro-rations on settlement statement.
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- Incorrect address for Buyer on Deed causing property tax bill to be sent to the wrong address (Buyer receives notice of past due property taxes).
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- Poor customer service, last minute rush for closing.
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- Unauthorized parties executing closing documents which results in cloud on title.
While I am certain there are more issues, these are the ones that quickly came to my mind. I am happy to close REO properties for your buyers and I do charge a higher closing fee than I would charge on a normal transaction but in my opinion, it is worth it.”
Lauren P. Kohl, Esquire
Lauren@SarasotaClosings.com
Phone: (941) 966-3575